Lettings market update: pricing correctly matters more in today’s market
Rightmove has just released its latest Rental Trends Tracker. The report is one of the clearest early indicators of where the lettings market may be heading, and is based on actual asking rents from over 400,000 properties advertised on Rightmove between 1st January and 31st March 2026, rather than a survey of opinion.
The headlines
- Q4 2025 -> Q1 2026: average asking price remained flat across the UK (exc London), and actually dipped in Wales – the first time since 2017 there was no rise from Q4 to Q1
- Available homes to rent now 3% higher than a year ago: the highest level for this time of year since 2021
- 8 enquiries per listing on average, down from 11 a year ago and 29 at the 2022 peak
- More than a quarter of listings saw a price reduction: the highest proportion on record
The detail
At the start of this year, rents outside London have stood still for the first time since 2017, which is very unusual. In fact, they dropped by 0.8% in Wales. Normally, the final quarter of the year is a little softer – largely because of reduced demand around Christmas (who wants to move at that time of the year?) – and then demand picks up again in the new year (“new year, new me”, etc), which tends to push asking rents upwards. This year, that usual bounce has not materialised.
Rightmove does note that average advertised rents outside London are still 1.6% higher than the same point last year (0.4% in Wales), but that is the lowest annual increase since 2018.
The bigger story is what appears to be driving these numbers. Supply and demand is at its most balanced 2020, and affordability pressures (a slow in wage growth and inflation still above the BoE’s 2% target) are clearly limiting how far rents can be pushed.
Available stock is 3% higher than a year ago and the average rental property now receives 8 enquiries (down from 11 a year ago, and 29 at the 2022 peak). Meanwhile, 26% of rental listings have seen a price reduction, the highest proportion since Rightmove started recording the metric in 2012.
What does this mean in practice for landlords?
This is not necessarily bad news for landlords. Good properties are still letting, and well-presented homes in the right locations continue to attract interest. But the market is asking for a more measured approach. Rightmove says agents are reporting exactly that, with landlords focusing more on reliable tenants, longer-term thinking and competitive pricing.
In my view, realism on launch price matters more than ever. Listings get their biggest burst of exposure when they first hit the market. They appear at the top of portal searches and go straight out in fresh-alert emails to the tenants who are most ready to move. If a property is launched too high, that brief window of maximum exposure can easily be lost. In a more price-sensitive market, overpricing at the outset often means a longer void and a later reduction anyway.
Conclusion
The lettings market is still active, but it is more price sensitive than it was a couple of years ago. The landlords who will perform best in this market are the ones who present their property well, pitch the asking rent sensibly from day one and make the most of that initial burst of exposure.
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The information contained within this article was correct at the date of publishing and is not guaranteed to remain correct in the present day.
